#United States #European Market #CLO ETFs #Palmer Square #Mission Woods

Palmer Square Capital Management Launches New ETFs in Europe

Palmer Square Capital Management, a prominent player in the world of credit-focused alternative asset management, has announced its plans to introduce three groundbreaking ETFs designed specifically for the European market. This strategic move aims to cater to the investment needs of institutional investors across Europe, capitalizing on the growing demand for innovative investment products in structured credit.

Founded in 2009 and managing over $33 billion in assets, Palmer Square has established a reputation for expertise in the CLO (Collateralized Loan Obligation) sector. The forthcoming ETFs will include two passively managed products focused on AAA and AA CLO debt, denominated in both euros and US dollars. Additionally, a third ETF will be actively managed, employing a multi-strategy approach similar to an existing offering in the U.S. market.

According to Angie Long, Chief Investment Officer at Palmer Square, the introduction of these ETFs marks a significant enhancement of the firm's global footprint. "The launch of these ETFs in Europe underscores our commitment to delivering cutting-edge solutions in complex investment environments across the globe," she stated. This reflects not only the firm’s dedication to meeting market demand but also its confidence in the potential of structured credit as an asset class.

Capital Preservation and Risk Management

One of the core objectives of Palmer Square's new ETFs is to ensure capital preservation for investors. The selected assets, which boast a history of zero defaults, will provide a cycle-resilient investment option. The actively managed multi-asset credit allocation product aims to streamline portfolio construction, while also presenting investors with access to optimal relative value opportunities within both corporate and structured credit markets.

Taylor Moore, Managing Director and Portfolio Manager, emphasized the significant demand for proprietary CLO indices and debt products within institutional circles. "Our ability to manage and develop these products entirely in-house ensures operational independence and best-in-class execution," he noted. This in-house capability is expected to result in more favorable outcomes for investors, as it allows for agile responses to market conditions and timeliness in execution.

A Timely Launch for European Investors

With the expected launch in early 2025, these ETFs will cater to the increasing appetite among European institutional investors for specialized credit products. The entry into the European market not only broadens Palmer Square's reach but also reinforces its status as a leading innovator in the CLO space. The firm is eager to leverage its extensive knowledge and proprietary benchmarks to offer investors an efficient entry point into what is regarded as a unique and compelling asset class.

This launch aligns with a larger trend in the investment landscape, where greater emphasis is being placed on diversification and risk management, particularly in volatile markets. With these upcoming products, Palmer Square is poised to make a significant impact on the European investment community, providing tools that facilitate strategic asset allocation and effective risk mitigation.

For more information, please visit www.palmersquarecap.com.